Electronic Arts (
EA
)
recently unveiled two new downloadable content packs (DLCs) for
Mass Effect 3,
namely
Reckoning
, which is multiplayer and
Citadel
, a single player pack. Developed by gaming studio Bioware, these
are the final DLCs of the
Mass Effect
trilogy.
The multiplayer
Mass Effect 3: Reckoning
is set to release on Feb 26 and will be available on
Microsoft's (
MSFT
)
Xbox 360 and PC. For
Sony's (
SNE
)
PlayStation 3 network, the game will release on Feb 27.
Reckoning
gives players free access to new characters, weapons and upgrades
that they can use to fight off alien reapers.
The single-player
Mass Effect 3: Citadel
is set to release on Mar 5 and will be available on Xbox 360 and
PC. For PlayStation 3 network, the game will release on Mar 6.
Being the concluding chapter,
Citadel
brings together the characters of the original
Mass Effect
and
Mass Effect 2
for the first time in the history of the franchise.
Players set out on a mission to uncover a conspiracy that
targets the protagonist Commander Shepard. For the first time the
pack gives players access to Citadel's Silver Coast Casino and
Armax Combat Arena. They can also explore and furnish Shepard's
living quarters on the Citadel, which is an added attraction. The
DLC costs $14.99 or 1200 Microsoft points.
The Mass Effect trilogy continues to be one of the most
successful franchises for the company since the last couple of
years. However,
Mass Effect 3
(released Mar 6 2012) faced severe criticism because of its
inconclusive ending. Many gamers blamed EA of intentionally
holding back game content, which they later on release as DLCs to
garner additional revenues.
EA released a number of DLCs both for the single-player and
multi-player format over the last 12 months. These DLCs expanded
the story of the original game and added a new dimension to the
ending. We believe that the concluding packs will help EA to woo
back some of its dissatisfied customers going forward.
So far, EA has always benefited from the launch of DLCs for
some of its famous franchises. In the recently concluded third
quarter for instance, extra content and free-to-play were
responsible for much of EA's digital revenue growth. EA's DLC and
free-to-play micro transaction content shot up 50.0% year over
year to $185.0 million in the quarter.
We believe that given EA's variety of titles and massive fan
following, it is better equipped to gain traction in the digital
format than most of the other new players. This will also help it
to counter stiff competition from
Activision (
ATVI
)
going forward.
However, we believe that EA faces a number of headwinds that
include a soft video game industry performance, particularly due
to weakness in retail sales amid an aging console system
lifecycle. Additionally, the huge popularity of free-to-play
games is also cannibalizing higher priced packaged goods video
games sales, which is a major concern in our view.
Currently, EA has a Zacks Rank #4 (Sell).
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